Introduction

The new HMRC system for Real Time Information (RTI) will start on 6th April 2013 so now is the time to start preparing for the change. The HMRC may have already sent you some information about RTI and you can find further details on their website – http://www.hmrc.gov.uk/rti/

What is RTI?

Real Time Information or RTI means that the HMRC require you to submit details about your payroll each time a payroll period is run. This means that if you run a monthly payroll you will need to submit the details of this electronically to HMRC on or before you have completed the monthly BACS run. RTI replaces in year forms and year end payroll returns.

An Important Change to Payroll Processing

Under RTI you must update your records on the day you pay your employees. This means that the period end processing must take place straight after the BACS run and you will no longer be able make changes after pay day.

New Submissions Types

HMRC have introduced four new types of submission file which can be sent to them electronically via the Government Gateway using the software:

Employer Alignment Submission EAS

This contains basic information about each of your employees and is sent as a one-off before you start using RTI submissions. Receipt of this file by HMRC indicates that you are ready to use RTI.

National Insurance Number Verification Request NVR

This sends a file containing employee’s name, address, DOB and NI number to HMRC and they will either verify that the NI number you have sent is correct or send you the correct NI number if you have left it blank. This submission can be run at any time and would typically be used when a new employee starts.

Full Payment Submission FPS

This is the full detail of your employee’s pay which is sent on or before the time of payment.

Employer Payment Summary EPS

This is a once a pay period transmission of details of the amounts that are to be claimed from HMRC i.e SMP, SSP. Also at the end of the year this return will include the details previously included in the year end P35.

Preparing for RTI

We recommend that you prepare in advance to ensure a smooth transition to RTI by making sure that your data is accurate. Through December, January, February and March you should be checking your data and making sure your records are accurate. Our support staff will be happy to help you with this by running test submission files through the HMRC’s Local Test Service and reporting any errors back to you.